Overview:- Well the current picture depicts that overall bears have their full control on the pair for the time being and making successively lower lows and lower highs on by taking the supply pressure from the downtrend line. The momentum is with the bears but eventually on Friday it moved up from 1.0783 level and marked high of 1.0863 which converted all the short covering of previous 5 days.
The current situation indicates that bulls have snatched the bite from bear’s mouth successfully and in day or two we will see panic buying in the pair till 1.0980 level at least.
In our previous report also we mentioned to sell the pair at 1.1060-63 target is 1.1000 and 1.0950 stop loss is 1.1105 and our both target has been achieved so we are expecting that our readers must have made profit from this move.
Technical prospective:- Technically, bulls have breached up the downtrend line and pair is still surviving above the downtrend line which is the recent development on the daily chart. RSI also bounced from the oversold territory and a bullish crossover is about to come in the MACD indicator which will going to be the first signal to buy. The aggressive traders are advised to go for buy and hold buy positional till 1.1100 level whereas positional traders can go for buy above 1.0900 level which will confirm the bullish sentiments.
Well, the 1.0780 level is strong support level followed by 1.0730 level which is also a good level to buy the pairs. The 1.0980 level is key resistance level followed by 1.1100 level. Well if today pair close and sustain above 1.0900 level then we may announce that 1.1100 level is not far away from here, the 1.0980 level is the only stumble block for bulls.
Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 1.0733 level remains intact. The pair is trading below all the major and minor EMA lines which indicate that bears may come back at anytime so to make the bullish stance bulls needs to cross the minor EMA lines first as early as possible.
What next:- Today’s closing matter a lot if bulls able to sustain above 1.0900 level then bulls are going to rock this week on contrarily if bears took the pair below 1.0780 level with daily closing then we see panic selling till 1.0740/30 level.
Trade idea:- Based on chart and studies above we can suggest that buy the pair at 1.0812-10 target is 1.0900 and 1.0950 stop loss is 1.0750.
